Almost a year ago, when SpaceX and Tesla chief Elon Musk purchased Twitter, many people believed that the amount of $44 billion was excessive for the value of Twitter. Unfortunately, the X’s current valuation has fallen expressively to just $19 billion, or more than 50%.
According to papers seen by The Verge, workers at X got a part of the company on Monday. It was valued at $19 billion, which is $45 per share. That’s 55% less than what Musk first paid for it.
The papers say:
The price of each share is set by the directors based on different things, following the tax rules.
Elon Musk is in charge of X but hasn’t set up a proper board of directors yet, even though a year has passed since he took over. Since Elon Musk took control of Twitter, he’s wanted to set up how the company pays its workers, like SpaceX. SpaceX is private but lets its workers change some of their shares into money now and then by selling them to outside investors.
The shares given to X workers are called “restricted stock units,” or RSUs. These RSUs add up over four years from when they’re first given, and they get taxed as income when something big happens, like an IPO or the company being sold, as said in the papers.
Until now, workers at X didn’t really know how much the company was worth after Elon Musk bought it. The recent details about the stock given to workers have given an answer to that question. But it seems Musk might still be too hopeful about how much X is worth. One of his big investors, Fidelity, thinks X is worth 65% less than what Elon Musk paid for it.